2. Microsoft Goals Engineer a product less vulnerable to piracy and counterfeit Provide set of tools to help ensure a more managed installation environment Help reduce VL key leakag e Customer Focused Goals Enhance ease of deployment with minimal impact to VL customers Provide Multiple and Flexible options Strong and transparent Microsoft privacy policy around activations

3. ACTIVATION HISTORY BACKGROUND: MICROSOFT OFFICE 2007 Volume Activation (VA) introduced in Windows Vista VA is now the standard for new Operating systems and Office Client products Identified non- genuine software displays permanent word-mark on screen Re-activation required for a copy determined as non- genuine at a later date - failure to re- activate results in loss of functionality VA ensures customers receive and deploy legitimate software Activation required for all VL Office Client products Provisioned and managed by IT Pros Transparent end user experience Pirated/ Counterfeit Software Some Customers unwillingly deploy counterfeit software Malware in counterfeits result in higher support costs Expensive down time Associates the proof-of- license (5*5 product keys) to the device Activation establishes a relation between a license you purchase and product on which you exercise the licensing rights Activation not required for Office2010 Server products Applies to Windows and Microsoft Client products Enterprises were given “bypass” volume license keys These Keys bypassed activation as no activation was required after entering product key Keys were easily compromised

4. Eliminates need for individual clients to connect and activate with Microsoft Eliminates need for individual clients to connect and activate with Microsoft Product key is pre-installed on clients Product key is pre-installed on clients Eliminates need for individual clients to connect and activate with Microsoft Eliminates need for individual clients to connect and activate with Microsoft Product key is pre-installed on clients Product key is pre-installed on clients KMS clients must connect with KMS host at least once every 180 days to keep activation current KMS clients must connect with KMS host at least once every 180 days to keep activation current Transparent end user experience Transparent end user experience Capable of activating hundreds of systems, as long as minimum threshold is established and maintained Capable of activating hundreds of systems, as long as minimum threshold is established and maintained One time activation with Microsoft hosted serviceOne time activation with Microsoft hosted service Supports online, phone and proxy activationSupports online, phone and proxy activation One MAK key per product per organizationOne MAK key per product per organization Flexible options to install MAK on each PC clientFlexible options to install MAK on each PC client Office Customization Tool (OCT)Office Customization Tool (OCT) Automated install file (Config.xml)Automated install file (Config.xml) Change key in BackstageChange key in Backstage Volume Activation Management Tool (VAMT) 2.0Volume Activation Management Tool (VAMT) 2.0 Key Management Service (KMS ) Multiple Activation Key (MAK)

5. Multiple Activation Key (MAK) for activating with Microsoft One time activation with Microsoft hosted activation service Supports online, phone or proxy activations Multiple Activation Key (MAK) for activating with Microsoft One time activation with Microsoft hosted activation service Supports online, phone or proxy activations Key Management Service (KMS) for enabling local activation Eliminates the need for individual machines to connect and activate with Microsoft Capable of activating unlimited number of systems, as long as the minimum threshold is established and maintained Client must connect with KMS host at least once every 180 days to keep activation current Key Management Service (KMS) for enabling local activation Eliminates the need for individual machines to connect and activate with Microsoft Capable of activating unlimited number of systems, as long as the minimum threshold is established and maintained Client must connect with KMS host at least once every 180 days to keep activation current MAK VAMT Image KMS Host KMS Client KMS DNS

6. Internal External KMS host key automatically available to customers via normal channels Install KMS host key on KMS host Activate KMS service with Microsoft -One time activation of KMS host -KMS host registers SRV with DNS Activate KMS service with Microsoft -One time activation of KMS host -KMS host registers SRV with DNS KMS client discovers KMS host KMS client activates - # of Office KMS clients ≥ 5 KMS client activates - # of Office KMS clients ≥ 5 KMS client regularly re-activates - Non-perpetual activation (180 days) - Communication between KMS host and KMS client is never exposed to Microsoft KMS client regularly re-activates - Non-perpetual activation (180 days) - Communication between KMS host and KMS client is never exposed to Microsoft KMS Host KMS Client Microsoft Hosted Activation Services One Time DNS Volume License Agreement

7. Operating SystemOfficeWindows Windows Server 2003√√ Windows Vista√ Windows Server 08√ Windows 7 VL√√ Windows Server 2008 R2√√

8. Microsoft Hosted Activation Services One Time Internal External Volume License Agreement MAK key available to volume license customers Install the MAK on the client: OCT, config.xml, Backstage Install the MAK on the client: OCT, config.xml, Backstage Activate with Microsoft Online, Telephone Activate with Microsoft Online, Telephone One-time activation Hardware changes require reactivation One-time activation Hardware changes require reactivation Image

9. Internal External MAK key available to volume license customers Enter the MAK key in VAMT 2.0 IID sent, confirmation ID received (unique to each MAK client) IID sent, confirmation ID received (unique to each MAK client) Perpetual activation: Hardware changes require reactivation Perpetual activation: Hardware changes require reactivation VAMT 2.0 pushes key to clients, receives installation ID (IID) Each MAK client receives unique conf ID Microsoft Hosted Activation Services One Time Volume License Agreement VAMT 2.0

10. As an IT Pro, you must be aware that volume activation is part of your Office 2010 deployment Why it’s important Familiar but better Flexible, compatible options VA is for virtual, too Resources Privacy and security VL activation never prevents an end-user from using Office 2010 Activation Activation establishes a relationship between the software’s product key and software on the device Activation helps ensure you are using genuine Office 2010 software, providing access to the latest features and protection against the malicious code common in counterfeit software Volume Activation in Office 2010 builds on Vista and Windows 2008 Microsoft has a variety of tools to help make deployment and management simple and easy www.microsoft.com/technet/volumeactivation Key Management Services (KMS): preferred method, ideal for vast majority of environments Multiple Activation Key (MAK): machine independent Virtual machines count toward minimum req. VA makes activation of virtual systems easy 5 connected systems (PCs, servers, laptops) All information is private and not used by Microsoft or any other party Enhanced data security

11. End-user experience Customizable user experience for enterprise Notification dialog prompts Supportability Requires low deployment / management effort Ensures full Microsoft / partner technical assistance Manageability Reduces reuse of leaked keys Integrated into deployment process and tools License Compliance and Management  Provides access to upgrades and contract options  Helps avoid penalties, reputation damage, and business interruption Assurance Helps protect against counterfeit Delivers all Office 2010 capabilities Significant change in Volume Activation process for XP customers Executed by IT Pros as part of deployment Volume Activation has nominal IT impact Requires no end-user action Microsoft does not collect user data No additional hardware is required KMS Recommended default method Enables local activation of unlimited number of systems Requires: At least 5 Office systems connecting to KMS host in any given 30 days & client systems connect with KMS host at least once every 180 days for all Microsoft Office Client Products MAK No minimum number of PC’s for activation Best for computers rarely connected to organization’s network Is one time activation with Microsoft hosted activation service Supports online, phone or proxy (VAMT) activations; use VAMT when activating Volume Activation in Office 2010 Ease of activation in deployment Inclusion of virtual systems in customer hosted activation service (KMS) KMS clients pre-installed with KMS client key Key management & reporting through Volume License Service Center (VLSC) Tools for better manageability One stop Volume Licensing Service Center portal Key Changes

12. User experience in KMS if not activated in 30 days (no UI experience in first 25 days) User experience in MAK asking for activation if VAMT is not used to orchestrate activation

26. Microsoft Confidential